Ep125: Option Trading: Use This Safe Strategy To Grow Your Canadian Portfolio

Are you leaving easy-safe money on the table by letting your stocks sit idle in your portfolio?
When the market’s unpredictable swings have you wondering if there’s a better way to capitalize on your investments, selling covered calls can offer a lucrative and relatively safe income stream you may be overlooking.
Rather than watching your portfolio’s value bounce around, imagine renting out your shares the same way you’d rent out a property, collecting premiums while still maintaining a stake in the stocks you believe in for the long term.
More importantly, as you strive to build wealth responsibly, managing taxes and minimizing risk become top priorities. In this episode, you’ll gain insights into how covered calls can help you smooth out the turbulence in your investment returns, whether you’re preparing for early retirement or seeking to optimize the cash flow from assets you already own.
• Learn a simple yet powerful way to generate consistent monthly income from your existing shares
• Discover tax-friendly strategies for handling premium income in both personal and corporate accounts
• Gain the confidence to navigate call option trades without the high-stakes risk often associated with options trading
Press play now to learn exactly how covered calls can earn you extra income from the stocks you already own.
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Achieving financial independence retire early (FIRE) requires smart planning, especially when it comes to growing your net worth and generating passive income with a focus on the sequence of returns of your Canadian investment portfolio. For business owners, navigating the complexities of corporate structures, tax implications, and investment strategies can feel overwhelming. From understanding capital gains rules to leveraging life insurance for wealth optimization, the right approach can transform your financial future. By aligning your strategy with tax-efficient tools, you can unlock the full potential of your business and investments, ensuring sustainable growth and long-term independence.
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[@balajivellai]

Can I do this strategy as an income produce tool for my Smith Mearuvar strategy?

[@canadianwealthsecrets]

Hi @balajivellai - yes, you definitely can! Just be sure that your borrowed funds for Smith Maneuver are in an unregistered account in order for the interest to be considered tax deductible.

[@balajivellai]

@@canadianwealthsecrets Thanks for your quick reply I watched most of your playlist, and your team is doing great. Yes I have my nonReg account and doing it for more than a year on IWM. Would you be able to do a wheel strategy in IWM or other US Stock for tax deductible?

[@canadianwealthsecrets]

​@@balajivellai Thanks for the amazing feedback!
The wheel strategy certainly works inside a unregistered account and therefore is helpful when utilizing the Smith Maneuver. Unfortunately, you cannot do the wheel in a registered account though because you cannot sell a naked put (aka cash covered put).
IWM has had a nice bounce back this past year, but is hanging out in-between the 50dma and 200dma which makes it a little less favourable at this time IMO. I've been hanging out with the QQQs quite a bit along with some other trending sectors that look to keep rolling for at least the first 2 quarters of 2025.
GL and do us a favour and share with your network :)

[@geniusthynk]

Hey Kyle Pearce! I just wanted to drop a quick note to say how much I enjoy your content-it’s genuinely amazing and super helpful. You’re really onto something great!
I do have one small suggestion that could make a big difference. Your videos are already awesome, but your channel could grow even faster with a bit of help on the thumbnail side. Thumbnails are like the first handshake with your audience; making them stand out can drive clicks.
I’ve been designing thumbnails for over three years now, and I’d love to help you out. In fact, I’d be happy to create a sample thumbnail for one of your videos for free-just to show you what I can bring to the table. There are no strings attached; it's just a way for you to see the potential.
If that sounds interesting, just reply here, and I’ll get started right away. I’m confident you’ll think, "Wow, I wish we had teamed up sooner!"
Looking forward to hearing from you and hopefully working together!